The entire maintenance and operation of telegraph and telephone facilities, except those required for train despatching and local railway purposes, was handed over to the Canadian National Telegraphs in the Fall of 1920. It may be noted, however, that the combination of the general railway and commercial business makes for economy in that a considerable portion of the railway business can be transmitted during the slackness of commercial business. YARDS:--Island Yard at St. John was reconstructed to provide additional terminal facilities for winter export business. The yard at Moncton was altogether too short for the trains hauled by the larger locomotives placed in service during recent years, and the situation of the roundhouses and other engine facilities prevented any extension. This lack of track length involved a great amount of terminal delay and extra switching. The handling of the numerous passenger trains was exceedingly difficult and expensive. The roundhouses, built many years ago for small engines were altogether unsuitable. The coal dock was worn out; and all other facilities were wholly inadequate for present requirements. The lack of proper facilities at this point where a very large number of trains were handled, involved much additional expense in operation, and, at times made it impossible to give satisfactory service. It was decided at the beginning of 1920, to provide new enginehouse facilities and extend the yard. Land was acquired for immediate and future requirements and a certain amount of grading and the construction of a large culvert were done. Last Spring the additional yard grading, and the construction of a 40-stall enginehouse, with machine shop, power house, stores building, coal dock, water tank and ash pits, were undertaken by our own forces, and the buildings have been occupied since December 17th, 1921. The principal roundhouse, engine terminal and yard of the Intercolonial in the Quebec District is at Chaudiere, a short distance southwest of Quebec City, but there was also a large roundhouse at the north end of the Quebec Bridge, built by the National Transcontinental Commission. The Grand Trunk had a small enginehouse at Point Levis. All three were being operated at much unnecessary expense. The facilities at Chaudiere were enlarged in 1920 and 1921 and all engines in that vicinity handled there at a saving of $75,000 per annum. Canadian Northern engine terminal facilities in the east end of Montreal were unsatisfactory. A 10-stall enginehouse, with stores building, machine shop, and all other usual facilities, has been constructed at Longue Pointe. The roundhouse at Hornepayne, Ont., destroyed by fire in 1920, was replaced by a permanent structure of a new design, to meet the extraordinary snow conditions, and extreme cold of that region. On Western Lines, it was necessary to rebuild in brick or concrete, the wooden roundhouses at Atikokan, Rainy River, Kamsack, Humboldt, and North Battleford.